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Good Thursday Morning. Here’s the rundown of this week’s Sports Business Playbook:

• 📰 This Week’s Topic: We’ve covered a number of massive sports business stories — Messi to the MLS, PGA Tour/LIV Golf merger, and the Washington Commanders sale — the past few months. Let’s get some updates on where those topics stand now

• 🍸️ Impress Your Friends at Cocktail Party: Want to show off your sports knowledge in a public setting but don’t have time to read the deep dive? Hit the “Impress Your Friends at Cocktail Party” section at the bottom for a CliffsNotes of this week’s topic

• 🤯 “Whoa of the Week”: Women’s World Cup prize money increases

• 💪 Weekly Reminders that Sports are Awesome: Several countries making history with their first victories in the Women’s World Cup

Hey team,

Switching it up a bit this week. Instead of the usual deep dive into a singular sports business topic, we’re going to do a few quick hits on some of the biggest stories SBP has covered the past few months — Messi to the MLS, PGA Tour/LIV Golf merger, and the Washington Commanders sale — and give updates on where things stand now.

Why am I doing this?

Well, it’s exciting to experiment with new formats and ideas as a way to keep things fresh for you, my readers (read: I had massive deliverable for my day job this week and have been getting crushed the last several days, but the show must go on!)

Let me know what you think!

Lionel Messi Made His MLS Debut, and Wow

Original story from June 15th here

Lionel Messi arrived in the United States a few weeks ago as his contract was being finalized, and we now have more details on what that contract looks like.

• Two and a half year deal worth up to $150 million, including salary, signing bonus, and equity in Inter Miami

• Additional, undisclosed revenue sharing agreements with Apple, Adidas, and Fanatics

• Not contractual, but he was able to be an “average Joe” and shop with his family at Florida grocery staple Publix without being totally mobbed

Anticipation for his debut has been building the past several few weeks, and the MLS and Inter Miami pulled out all the stops in both events and advertising.

Massive crowds endured a torrential downpour for his unveiling at Inter Miami’s home stadium, Apple posted a clever billboard that revved up aficionados, and then came his opening match this past Friday in the Leagues Cup against Mexican league foe Cruz Azul.

And boy, did the GOAT deliver.

You could not write a better script for both Messi and the MLS. The match drew 1.75 million viewers on Spanish-broadcaster Univision (not counting Apple TV subscribers), and the promotion machine is only just beginning.

Just as one example, we know that Apple TV had 1 million MLS Season Pass subscribers prior to Messi joining, and all parties will now be incentivized to co-promote the platform. Expect to see a ton of advertising and short and long-form content featuring Messi all over Apple.

Messi’s new club, Inter Miami, is also already seeing the benefits. The club’s social media presence has exploded due to Messi’s arrival, and team owner Jorge Mas believes the club could double in value from ~$600 million to $1.3-$1.5 billion in the next year alone. That’s pretty bold, but it’s hard to deny the immediate impact he’s having on the club.

What I’m Watching For

Expect to see Inter Miami and the MLS continue Messi-mania. They’ve hitched their wagon to La Pulga, and they are going to do everything they can to leverage his star power both domestically and globally.

An interesting wrinkle: Messi has now scored three goals in his first two matches. While the MLS wants him to perform well, there is a point of diminishing returns if he is just dominating because it would potentially paint the MLS product as inferior to the competitor global leagues.

Their hope has to be that he plays up to his standards but keeps the fanbase interested not only in what he’s doing but also in general league play.

PGA Tour/LIV Golf Merger Marches On

Original story from June 8th here.

After the fireworks of the merger announcement and subsequent fallout in early June, things have been relatively quiet for the PGA Tour and LIV Golf.

Outside of PGA Commissioner Jay Monahan’s mystery medical condition that definitely, most certainly had nothing to do with the stress of going full heel and backtracking on every moral stance he’d taken over the past year, it seems like business as usual for golf.

Why?

Well, to most people following the merger, it appears the PGA and LIV have a framework of deal points sketched out but no tangible plans. Because of this, there have not been many juicy developments, and therefore not much to talk about with it.

Even the expected theatrics for when merger deal architect and PGA Policy Board member Jimmy Dunne went before the US Senate Permanent Subcommittee on Investigations in mid-July ended up being somewhat tame.

So, why are we talking about it?

Well, Dunne did say one major thing that gave us a peek behind the curtain at the PGA Tour’s thought process.

Jimmy Dunne said the quiet part out loud.

When your opponent has unlimited time and resources to accomplish their objectives, there's an inflection point where "if you can't beat them, join them" becomes the only viable option to retain some semblance of control.

As I noted in the first article I wrote on this topic, the PGA Tour responded to this existential threat with both carrots (increased player prize money) and sticks (lawsuits against LIV), but neither were sustainable in the long term and it could jeopardize the Tour’s financial standing.

Ultimately, it had to make a deal with the devil to preserve its position in the golf world. And you better believe the devil is using this data point to accelerate their sports investment plans.

What I’m Watching For

While it’s been presumed to be a done deal, there are a number of unanswered questions about the merger, least of which is if this deal will actually clear the regulatory hurdles both in the US and globally.

If that actually happens, the next challenge begins: combining two rival golf leagues with a massive amount of bad blood on both sides.

• What happens to the LIV Golf brand and its combative CEO Greg Norman?

• How do the players who left get re-integrated?

• What will the players be able to say (and not say due to non-disparagement clauses) about the Saudis?

Only time will tell on these answers.

Regardless, Saudi Arabia is not stopping. There are rumblings about the PIF potentially pursuing tennis due to the similar structure to golf, and we just had the preposterous offer the state-controlled team Al-Hilal put in front of French soccer star Kylian Mbappé.

It has been rejected (for now), but the audacity on all of these types of moves is only going to be ratcheted up as the Saudis continue to push forward.

Josh Harris Takes Command

Original story from May 18th here.

After a long, drawn out saga with a few final “f you’s” from outgoing owner Dan Snyder, Josh Harris’ ownership bid was unanimously approved by NFL owners late last week and he formally assumed control over the Washington Commanders.

Dan Snyder leaves with a $5 billion profit on the sale but a reputation in tatters for orchestrating one of, if not the, worst ownership tenures in professional sports history. Over Snyder’s 24 seasons as owner, he did just about everything wrong:

• On-field Performance: Just six playoff appearances, and the last playoff win was in 2006

• Fan Affinity: Per Nielsen, just 29% of D.C. residents identified as fans of the team, almost half of what it was (51%) in 2004.

• Personal and Professional Misconduct: The team has had seven investigations launched against them in just the past three years for everything stemming from sexual harassment to cooking their books and withholding revenue from the other owners.

Not so subtly, the findings from one of these investigations mentioned above were released by the NFL the same day as Harris’ deal was approved, and Snyder was hit with a record $60 million fine on his way out the door.

The fine is a penalty for an unforgivable pattern of personal and professional misconduct by Snyder, but it also serves as a “good riddance” gesture by the NFL and creates a fresh slate for the new sheriff in town.

Enter the Commanders’ savior: Josh Harris.

Harris and his top flight ownership group, which also includes NBA legend and fan favorite Magic Johnson, wasted no time rolling up their sleeves.

There are rumors of big updates like a team name change that would serve as both a symbolic gesture and presumably an upgrade over the relatively stale “Commanders” name.

But the new group is also trying to build a personal connection with an alienated fanbase that is now looking to heal and regain trust in its football team.

What’s the key to football fans’ hearts? Buy them a beer!

Harris did a call-in radio show on Friday talking about his new regime, and he then proceeded to buy a round of beers for multiple bars where listening parties were being held.

These gestures go a long way, but the continued engagement, listening to the fans, and frankly just being the anti-Dan Snyder is what will further the halo effect for Harris’ team.

This goodwill has been received well by the fans, and they have rewarded the new ownership at the box office.

The Commanders have already surpassed total revenue for tickets (up 52%) and suites (2x) compared to last year.

I would expect to see additional statistics like this continue to pop up over the next several months, and look for the NFL to lean in to help further augment the rebuilding process in one of its most important markets.

What I’m Watching For

Harris and his new ownership group have “won the press conference” — sports jargon for making a great first impression.

Now they’ve got to get to work.

Rebuilding the relationship with fans after Dan Snyder’s run should honestly be relatively easy given “you can’t fall off the floor,” as an old co-worker of mine used to say.

The bigger challenge they have to figure out is the plan to get a new stadium in place over the next decade and make the current stadium (arguably the worst in the league) tolerable during that time.

As for Dan Snyder, he will slink off into the distance with his billions.

He will never be a part of a sports franchise again, and I think it is highly unlikely he’s going to be able to hold a position that puts him in the public eye.

While the massive profit he earned feels unjust, there is a sweet irony to the addition by subtraction and the potential renaissance of Commanders’ football in the DMV area now that he is gone.

Impress Your Friends at a Cocktail Party

Want to show off your sports knowledge in a public setting but don’t have time to read the deep dive? This section is the CliffsNotes of this week’s topic

• Opener: We’re trying a new format this week!

• Shot: We’re looking back at three major stories from the past few months — Messi to the MLS, PGA Tour/LIV Golf merger, and the Washington Commanders sale — and what the latest is with each

• Chaser: Messi —> Going to get $150 million across his 2.5 year contract with Inter Miami, scored an iconic goal in his first match in the MLS, and the co-promotion machine that was already in full swing is about to be sent into overdrive.

• Chaser: PGA/LIV Merger —> Not many major developments, but we learned during a Senate Committee hearing that the PGA felt forced to make this move because they could not fight the Saudi money over the long-term and this deal secured its future in golf.

• Chaser: Commanders Sale —> The former owner, Dan Snyder, sold the team for a $5 billion profit but leaves with a reputation in shambles due to the team’s on-field mediocrity and his off-field personal/professional misconduct. The new owner, Josh Harris, has already gotten to work rebuilding the relationship with the fanbase, and the team’s business is improving as a result (ticket sales up 50% year-over-year and suite sales up 2x)

“Whoa” of the Week

Insane, mind-blowing things constantly happen in the sports business world. Here was my favorite of the past week.

1. Women’s World Cup Starting to Trend in the Right Direction

Weekly Reminder that Sports are Awesome

This newsletter is, of course, mostly centered on the business side of sports and the things that happen off the field. That being said, it’s important to remember why we fell in love with sports in the first place, though.

This section is meant to highlight the amazing things that happened in sports this week that serve as that reminder.

1. New Zealand’s women’s team earned the country’s first ever World Cup victory — men’s or women’s — on the tournament’s opening night, stunning heavy favorite Norway.

2. Ironically, New Zealand was on the other end of this feat just a few days later when the Philippines beat them 1-0.

Thanks for reading! Let me know what feedback you have.

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Until next time, sports fans!

-Alex